BP fell into a hefty loss during the first quarter, hit by low crude prices and costs related to the 2010 Gulf of Mexico oil spill, the British energy giant said Tuesday.
BP announced a net loss of $583 million for the first three months of the year, which compared with a profit after tax of $2.6 billion during the first quarter of 2015. The company noted that benchmark Brent oil prices averaged $34 in the quarter, down from $54 a year earlier. BP said it had set aside a further $917 million in the first quarter to meet compensation costs linked to the Gulf of Mexico disaster - bringing the total charge to $56.4 billion.
Stripping out exceptional costs and changes to the value of BP's oil stockpiles, the company reported a net profit of $532 million in the first quarter, but down almost 80 percent from a year earlier. Earlier this month, BP shareholders rejected a pay deal worth $19.6 million for Dudley, in a symbolic vote in the face heavy losses and job cuts at the oil giant. The London-listed energy group clocked up a loss of $6.5 billion last year and recently announced plans to axe another 3,000 jobs, taking its total cull to 11,000 positions since the start of 2015.